Lawsuit alleges Chetrit affiliates owe $42M plus interest and fees
Affiliates of the Chetrit Group are facing foreclosure of their long-shuttered hotel, The Tides South Beach. SHEDDF3 VNB LLC, tied to Safe Harbor Equity, filed a foreclosure lawsuit against CG Tides and other companies linked to the New York-based Chetrit Group over the 11-story hotel at 1220 Ocean Drive, court records show.
Joseph Chetrit, a founding partner of the family-owned company, did not immediately respond to a request for comment.
The Tides has been closed since Hurricane Irma hit South Florida in 2017, according to the Miami Herald.
The pandemic has wreaked havoc on the hotel industry nationwide, with some properties opting to stay closed until tourism rebounds.
The complaint alleges that the Chetrit entities and Cuesta Construction failed to satisfy the mortgage, which was due Dec. 20. Chetrit secured a $45 million mortgage for the hotel and an assemblage of properties behind the hotel in 2014. Ocean Bank was the lender. In January, Ocean Bank sold the debt to the Safe Harbor Equity affiliate.
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